BITS; Google Gives Up a Nexus Plan

By BRAD STONE and MIGUEL HELFT

Published: May 17, 2010

Google's flagship Nexus One phone debuted earlier this year to much fanfare. The phone was not only flashy -- evocative of Apple's iPhone in many respects -- but Google was also using it to try to change the dynamics of the wireless industry by selling it directly from its Web store and bypassing the powerful wireless carriers.

On Friday, Google admitted defeat in that pursuit. In a blog post, Andy Rubin, chief of its Android division, said the company will now focus on selling the Nexus One through existing retail channels -- and would soon stop selling the handsets online altogether.

Mr. Rubin wrote that much of the technical innovation of the Nexus One has already found its way into other Android phones, like the Verizon Droid Incredible by HTC.

But Google's ambitions have really been curtailed by powerful industry realities. With Android, Google is seeking to counter other mobile phone platforms like Microsoft's Windows Mobile, RIM's BlackBerry and most importantly, Apple's iPhone. And in that battle, it needs the help of the wireless carriers like Verizon and Sprint.

The strategy first ran into trouble when Google failed to provide customer support for the devices. Then the carriers clearly balked at Google's Nexus One strategy, when first Verizon and then Sprint said they would not carry the phone as originally planned.

Google's Nexus One group is losing one of its leaders as well. Earlier this week, Erick Tseng, the senior product manager in charge of the Nexus One debut, left Google for archrival Facebook, where he will be in charge of mobile products.

This is a more complete version of the story than the one that appeared in print.